Libor’s Complex Web May Limit Rate-Rigging Damage Claims

By Evan Weinberger

Law360, New York (July 27, 2012, 7:42 PM ET) -- While some banks in theory could be on the hook for trillions of dollars in litigation over alleged rigging of Libor, the benchmark rate's importance could limit those damages as investors face difficulty determining just how much they were hurt.

Libor is a key benchmark that has been used in trillions of dollars' worth of financial transactions on everything ranging from complex derivatives to adjustable-rate mortgages. Because of this, allegations of rate-fixing led to fears that implicated banks could face trillions in claims from aggrieved investors,...